The Ghana Chamber of Mines has asked the government to completely remove the Growth and Sustainability Levy (GSL) on mining companies.
The Chamber says the current tax system is putting too much pressure on the sector.
In a statement released on April 20, 2026, the Chamber acknowledged the recent cut in the levy from 3 percent to 1 percent. However, it said the reduction does not do enough to ease the heavy tax burden mining companies face.
“The adjustment of the GSL from 3% to 1%, while directionally appropriate, is inadequate to offset the cumulative burden imposed by the current fiscal structure,” the Chamber stated.
The group explained that both the GSL and mineral royalties are charged on gross revenue. This means companies must pay these taxes without considering their operating costs, which makes it harder for them to stay profitable.
“Both royalties and the GSL are levied on gross revenue and are cost-insensitive, thereby compounding the pressure on mining operations, particularly for high-cost, mature, or marginal mines,” the statement noted.
The Chamber warned that keeping several taxes based on revenue could harm Ghana’s position in the global mining market. It added that this approach could also reduce government earnings over time.
“International experience demonstrates that excessive reliance on overlapping revenue-based instruments can undermine the mining sector’s competitiveness and reduce government revenue in the long term,” it added.
The Chamber therefore urged the government to go further and carry out wider tax reforms to support investment in the industry.
“Accordingly, the recent adjustment in the GSL should not be interpreted as a ‘dilution of government revenue objectives’, but as a partial and necessary step toward fiscal optimisation. However, it is not enough; the 1% GSL should be reduced to zero,” the Chamber stressed.
